As part of a 400,000 metric ton contract, Mexico received its first shipment of white corn imports from South Africa.
After several years, Mexico is once again added to the list of buyers of white corn from South Africa, becoming a more competitive option for the Gulf and Southeast region of the country, given the high prices of the grain in the domestic market, specifically in the Bajío region.
So far, there is a commitment from Mexican buyers to purchase more than 400,000 tons of South African grain, taking advantage of the Government’s cancellation of the 20% import tariff, informed Juan Carlos Anaya, general director of Grupo Consultor de Mercados Agrícolas (GCMA).
The first shipment of 40,000 tons of grain arrived in Mexico in October and four more shipments are already scheduled for November, January and February, with 176,000 tons.
Imports of white corn
Faced with higher input costs, the commercial corn area of South Africa, the world’s second largest white corn producer, is expected to decrease slightly in the 2022-23 period, according to a report by the United States Department of Agriculture (USDA).
The cereal’s planted area is estimated at 2.6 million hectares.
Despite the slight decline in area, assuming normal weather conditions, South Africa’s total corn crop for 2022-23 is projected to reach 16.7 million tons, completing the third consecutive year in which production would exceed 15 million tons.
The crop is expected to be made up equally between white and yellow maize, with a slight increase in the white variety.
Exports are estimated at 3.4 million tons in the current cycle and its five main markets are Japan, Taiwan, Vietnam, Botswana and South Korea, accounting for more than 80% of exports.
The price of corn is influenced by weather conditions and other factors affecting crop yields, changes in the area allocated to corn versus other major crops, and general economic and regulatory factors.
These factors include government policies and subsidies with respect to agriculture and international trade, as well as global and local supply and demand. The relative importance and effect of these factors on the price of corn are difficult to predict.
